DVLA Closures (Scotland)

Mike Crockart Excerpts

Wednesday 7th March 2012 Westminster Hall

[Mr Doran]

The jobs have not really been considered in the consultation document. I understand that 1,200 jobs are at risk and some of those—200 or 300—will be moved to Swansea, if people are prepared to move. The hon. Gentleman is right. Despite the progress made by the DVLA in going online and its digital technology, I understand that there is a huge gap in the technology. The trade unions’ assessment is that it will take at least four or five years to fill that gap. That will add to the problem.

The other route being offered to customers is the post. We are talking about 2.4 million new transactions shifting from local offices to the centre in Swansea. A pilot test run a year or two ago, looking at postal loss—envelopes that go missing between the DVLA and its customers—showed that some 0.9% of post was lost. That does not sound like a lot and I am told that the DVLA has got that figure down to 0.5%, but with the number of transactions that will transfer to Swansea the potential loss is huge: almost 120,000 of 2.4 million letters will potentially be lost.

I have calculated that, if everyone in my area used the post—clearly they will not; this is just for illustration— over the past three years we would have lost 1,250 communications. Given that many of these communications will contain identification documents, such as passports, that is a serious problem. I should like the Minister to comment on that.

We are given three potential ways forward and there is a serious problem with each of them. More important, from my point of view as a former practising solicitor, are the legal consequences of another aspect of the DVLA’s work. The key responsibility in the local areas is enforcement.

[Mike Crockart (Edinburgh West) (LD)]

I am sure that the hon. Gentleman agrees that a key danger of the reorganisation is the potential effect on evasion of vehicle excise. I am also sure that he is already aware that if evasion rose by only 0.5% it would wipe out all the savings of this reorganisation.

[Mr Doran]

The hon. Gentleman is right. The 2004 figures, which are the most recent that I have managed to get hold of, show that evasion of vehicle excise duty was about 5%. That is a significant figure. Every percentage point costs the DVLA £57 million. Even a small increase, say 0.5% or 1%, would mean that the £28 million in savings expected from the closure process will be wiped out. It is not unrealistic to say that through this process, we are heading, particularly in Scotland, towards the serious possibility that evasion of vehicle excise duty will increase.

In the system at the moment there is an enforcement office in each region. In Scotland, that office is in Glasgow. Around the country, vehicles go out on our streets patrolling with number-recognition equipment, tallying what they find with DVLA records to pick up vehicles on which the vehicle excise duty has not been paid. It is quite a sophisticated operation.

I am told that responsibility for vehicles is to be removed from the local office, but Scotland has a particular legal issue. In England and Wales, and perhaps in Northern Ireland, the DVLA is the prosecuting authority, but in Scotland everything operates through the procurator fiscal, who has to operate within the confines of Scots law, which involves corroboration of every piece of evidence presented to the court.

In my local area, there are between 200 and 300 contested cases a year, because someone either pleads not guilty or ignores a summons from the court. That needs evidence, which at the moment is provided by an officer from Glasgow travelling to the local sheriff court, which could be just around the corner in the Glasgow sheriff court or in Orkney, Shetland or Western Isles. An assessment is made in each case—basically, a cost-benefit assessment: what is the cost of sending an officer to Shetland or Aberdeen and what are we likely to get in the way of a fine? If the costs outweigh the likely fine, a case will probably not be proceeded with, so people are already getting away with refusing or failing to pay their vehicle excise duty.

If the same cost-benefit analysis is done in the Swansea office, sending someone from Swansea to Shetland or even Aberdeen becomes a major operation. There are major cost factors, including overnight stays, which are unlikely at the moment. The cost will rise, and will we also see a rise in evasion of vehicle excise duty? If we do, what assessment has been made of the cost? Where is the financial analysis to show us what the new system might mean for evasion, in particular if we continue to provide evidence that must be from a witness, on which there is no option in the Scottish courts? What is the analysis? It strikes me that we will be opening the gates to people who might be prone to think that they can get away with evading their vehicle excise duty, and that undermines the whole system.

Among the problems to be considered, I have mentioned the consultation document, which is flabby and weak in every respect—I am concerned about it, because there is a host of areas where we do not have answers, some of which I have outlined. There has been no consideration of the huge rise in inconvenience to the public who use the local centres in significant numbers. The evidence is available: 2.4 million people a year will be inconvenienced, many of them businesses, some large, some small. The consultation report tells us that some such businesses already use the online system but, from my contacts in the motor trade, they are more interested in completing their licence or registration on the same day, rather than waiting several days, perhaps longer, for the material to come back from Swansea.

Also, from experience of such significant changes and reorganisations, the first two or three years are likely to be chaotic as the system beds down. I have commented on the loss of documents, in particular passports, which are valuable in themselves but are lost at huge inconvenience to the individual passport holder and with a possibly large profit for any criminal into whose hands the passport might fall. The potentially significant rise in tax evasion would be at significant cost to the Treasury. At this stage, with the lack of information from the consultation process, it is difficult to see anything positive. I have a simple question for the Minister: what is the point?